Brazil Power Firms Will Raise Tariffs
In Attempt to Recoup Rationing Losses

By

Adriana Brasileiro Dow Jones Newswires

Updated Aug. 22, 2001 7:16 p.m. ET

RIO DE JANEIRO -- The Brazilian government said this week it will allow energy distributors to hike tariffs to compensate for losses owing to a power-rationing program which started in June and aims to reduce consumption by 20% on average.

This may provide some hope for energy-sector players, who suffered a disastrous first half of the year when power companies saw revenue drop 20% and shares decline up to 50%. Brazil's Electricity...